Six Flags Reports Q2 and Half-Year Performance
courtesy of Six Flags Entertainment
(eap) “Following a year of transition, our strategy is taking hold. Despite a challenging weather backdrop in the first half of the year, we are seeing a return to a solid growth trajectory in attendance, revenue and earnings,” commented Selim Bassoul, President and CEO of Six Flags Corp., on the Q2 and half-year results for the current FY 2023, with closing date on July 2nd.
For Q2 2023, the Arlington, Texas-based thrill theme park and regional water park operator group (with a total of 27 destinations in the US, Canada and Mexico) reported total revenues of $444 million (approx. €406 million), a net income of $21 million (approx. €19 million) and an Adjusted EBITDA of $161 million (approx. €147 million). While total revenues increased by two per cent and the Adjusted EBITDA by five per cent compared to the same period last year, net income was 55 per cent lower than the Q2 2022 result. Visitor numbers increased from 6.7 million guests in Q2 2022 to 7.1 million guests in Q2 2023. However, due in part to higher season pass ticket sales, which include various offerings at the Six Flags parks at a lower cost, per capita spending per guest declined.
With a view at the half-year results, the performance was as follows: Total revenues in the first half of the 2023 financial year of $586 million (approx. €536 million) increased by two percent compared to the first half of 2022. However, a net loss of $49 million (€44.82 million) and a net loss per share of $0.59 (€0.54) was stated. In the same period of last year, the losses were $20 million (€18.3 million) and $0.24 per share (€0.22). Adjusted EBIDTA is positive at $143 million (€132 million) in the first half of 2023 – in the same period of FY 2022, this key figure was $137 million (€125 million).
Six Flags Group says the decline in net earnings per share is primarily due to higher self-insurance provisions in the second quarter of 2023. The decline in total net revenue and net earnings per share is due to higher interest expense in the second quarter of 2023 compared to the prior year. Operating costs also increased in the past quarter due to higher advertising expenses and seasonal wages, which are partially offset by a reduction in permanent staff, among other factors.
“I am pleased to see our team members executing so well towards our strategic objectives. Delighting our guests is our number one priority, and this season, we have invested significantly in park infrastructure and beautificaton, and we have introduced an exciting lineup of new events, including ‘Flavors of the World’ and ‘Summer Nights Spectacular’. Looking ahead, we are optimistic about the remainder of the season, with major investments in our ‘Oktoberfest Food Festival’, ‘Kids Boo Fest’, ‘Fright Fest’, and ‘Holiday in the Park’ events; and looking further ahead to 2024, we will be investing heavily in new marketable attractions, to further elevate our position as a leader in thrills,” said Bassoul. ■
